Good luck waiting for certainty. The most certain thing is ongoing uncertainty. Depending of course on your own strategy, that leaves you with building a portfolio of uncorrelated assets.
The unknown is what happens to value if we get a series of wet years which should depress temporary water prices quite quickly, less so the permanent water prices. Pushing the portfolio to higher average lease lengths is good strategy by management to dampen the short term impact of 1-2 years.
The manager gets paid like a typical hedge fund, with a bias towards overperformance.
But it is good to see the Chairman has 3Million in shares. He doesn't take a fee but will have high stake in the management company so is rewarded that way to a greater extent than the dividends he receives..
I don't begrudge them that as they provide a value added service.
I looked into buying water rights directly but figured I would create headache managing the trades and leases, especially things like what happens if lessee defaults on a payment.
D2O Price at posting:
$1.40 Sentiment: Buy Disclosure: Not Held
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